Proposal for a Council Directive amending Directive (EU)2011/16 as - PowerPoint PPT Presentation

Proposal for a Council Directive amending Directive (EU)2011/16 as regards access to AML information by tax authorities - "DAC5" EESC – Brussels, 14.09.2016 European Commission DG Taxation and Customs Union

EU framework EU framework for Administrative Cooperation for Administrative Cooperation DAC2 DAC1 DAC1 (AEOI) DAC3 DAC4 (Dir. 2011/16, (Dir. 2011/16, (Dir. 2015/2376) (Dir. 2014/107) (Dir. 2016/881) except Art. 8) Art. 8) • Automatic exchange of •New framework and •Automatic exchange • Country-by- •Automatic exchange information on 5 tools (incl. removal (using a central country reporting of information on non-financial directory as from of banking on certain financial financial account categories : 1.2018) of: secrecy ) for information: information : administrative • Income from • Advance cross- • Revenues • Interests, dividends cooperation and, in employment border rulings or other income • Profits particular, new • Director's fees • Advance pricing generated • Taxes paid and provisions for: • Pensions arrangements • Gross proceeds from accrued • Exchanges on • Life insurance sale or redemption • Accumulated request products • Account balances earnings • Spontaneous • Immovable property • Number of exchanges (income and employees ownership) • Certain assets

DAC5 – The proposal MS tax administrations shall have access to • beneficial ownership information held by obliged entities and registries collected under AML legislation Rationale behind the proposal • Identification of beneficial owners behind intermediary • entities key in the fight against tax fraud and evasion Uneven access to beneficial ownership information by • tax authorities within the EU Council Proposal amending Directive 2011/16/EU 3 EESC - Brussels, 14.09.2016

Access to: Impact of AMLD explanation 4AMLD the 4AMLD provision proposal 13 Customer due diligence Enhanced to � include electronic measures identification means 30 Information held on registries Access � of BO – entities, trusts and 31 Registration � other similar legal Access arrangements 32a Access to mechanisms on BO New � of bank accounts 40 Documents and information on Enhanced to � include electronic the costumer due diligence and identification evidence/records of means transactions Council Proposal amending Directive 2011/16/EU 4 EESC - Brussels, 14.09.2016

DAC – the basics Audits, Monitor compliance Council Proposal amending Directive 2011/16/EU 5 EESC - Brussels, 14.09.2016

"Look-through" for Controlling Persons Corresponds to "beneficial owner" in • the Financial Action Task Force Recommendations Look-through the entity to identify • the natural person(s) who exercises control over the entity For entities: control or ownership interest • (often interpreted as >25% ownership) For trusts (and equivalent): settlor(s), • trustee(s), protector(s), beneficiary(ies) and other natural person(s) exercising effective control over the trust Council Proposal amending Directive 2011/16/EU 6 EESC - Brussels, 14.09.2016

Exchange of information on request Pre-requisites • National sources have been exhausted • No obligation to collect information if contrary to • national law Foreseeably relevant information for tax purposes • Use of information for tax – purpose limitation • Secrecy requirements • Follow-up requests to exchanges resulting from • automatic exchange of information would fall into this scope Council Proposal amending Directive 2011/16/EU 7 EESC - Brussels, 14.09.2016